If the Reserve Ratio Is 8 Percent,then an Additional $800

question 56

Multiple Choice

If the reserve ratio is 8 percent,then an additional $800 of reserves can increase the money supply by as much as

• A)$6,400.
• B)$8,000.
• C)$12,500.
• D)$10,000.

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Definitions:

C. Everett Koop

An American pediatric surgeon and public health administrator known for his work as the Surgeon General of the United States from 1982 to 1989.

Surgeon General

The leading spokesperson on matters of public health in the federal government of the United States, overseeing the U.S. Public Health Service Commissioned Corps.

Ronald Reagan

The 40th President of the United States (1981-1989) known for his conservative policies, economic initiatives dubbed "Reaganomics," and a strong stance against the Soviet Union during the Cold War.